The amount of money that has been pumped into the economy from the federal government has to cause inflation sooner or later.

My other suggestion would be to pay the principal down a tad to lower your risk and look good to the bank.The downside to paying it off is you lose your interest tax shield since it's tax deductible and off sets your taxable income.

The amount that you have traded down by, or $250,000, is taxable, and likely will trigger most if not all of your tax consequences.

Interests in installment contracts are covered under the UCC, federal law.

They’re also subject to strict regulatory oversight at a State or Federal level.

Honestly when you are being as transparent and vulnerable as I am here and sharing information with people and trying to do the best you can to be a ethical educator in an industry that is full of corruption and then someone accuses you of being a fraud, and compares you to someone who is in federal prison, that can how can I say this..."

It does not sound like he obtained any income from this project, if he did, that would be taxable income which is pretty normal.  

One reason for this is that hoarders fall under the ADA, a federal civil right law, and can be considered a special class adding an additional layer of legal turmoil to an eviction you don't already want.

The minute you closed you had the right to the funds and it is a taxable transaction. 

I also have a small photography business which helps reduce my personal taxable income.